The 10-second takeaway
For the quarter ended March 31 (Q4), Quality Systems met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Quality Systems booked revenue of $109.0 million. The 15 analysts polled by S&P Capital IQ hoped for a top line of $109.8 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $97.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.25 for Q4 were 22% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.5%, 430 basis points worse than the prior-year quarter. Operating margin was 21.4%, 790 basis points worse than the prior-year quarter. Net margin was 13.8%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $121.4 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $516.7 million. The average EPS estimate is $1.56.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,108 members rating the stock outperform and 64 members rating it underperform. Among 738 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 722 give Quality Systems a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quality Systems is hold, with an average price target of $46.38.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Quality Systems the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Quality Systems to My Watchlist.